Altcoins Thrive After Market ‘Bear Traps’: A Look at History’s Patterns

Crypto markets often exhibit cyclical behavior, and a recurring pattern is the relationship between ‘bear traps’ and the beginning of an altseason. These market downturns are followed by a rebound in the value of alternative cryptocurrencies (altcoins), leading to stronger performance than Bitcoin. Historical data from 2017 and 2021 offers compelling evidence of this trend. Both years witnessed a brief period of investor confidence erosion, which was quickly overcome by market growth as altcoins surged ahead of Bitcoin’s price. Those who held through these initial dips reaped substantial rewards. 2025 may see a similar cycle unfold as recent market dynamics, marked by steep declines followed by swift recoveries, spark discussions about potential altseason occurrences. Several altcoins have shown signs of strength, while Bitcoin’s dominance has stalled. These are often indicators of an upcoming altseason. Another clue lies in the prevailing market sentiment: When fear dominates and traders feel the rally is over, that triggers a bear trap – which subsequently leads to altcoin surges. 2017, 2021, and beyond show how these patterns repeat themselves. This suggests that investors who prepare for an altseason could reap significant gains from this emerging trend.